HSBC Overdraft

Shoddycow

Hello to you all. I am brand new to this site so forgive me if I get anything wrong but basically, I have an HSBC account that I've had for over 15 years.

It is in a constant state of overdraft and there is very little activity in it.

I pay £20 per month to be overdrawn £1800. Basically I want to get rid of this debt but don't have the funds to clear it all in one go.

Do any of you have any suggestions as to how I can clear my debt nicely?? Without paying this interest???

Thank-you in advance

Claire

halloweenqueen_2

Try finding a credit card that lets you pay the 0% transfer on a bank balance most only like to clear card balances. £1800 is a reasonable credit card limit, however do not use the card for anything else otherwise it will add purchase interest to it and you will be worse off. If you can get one that will let you clear a bank balance at 0% for about 9 months thats £180 paid off without accruing any interest which must be costing you almost half your £20 payment a month? When the nine months is finished swap to another card immediately cancel the other one in writing once the balance is cleared not only will it get rid of temptation but you may be able to apply for that one again at the 0% rate after 6 months. If you find another card at another 9 months thats another £180 without adding interest, if you can carry on like this it will take you about a few years to completely clear it but will also be interest free. If you add onto that £20 a month you pay the interest you would save, a conservative estimate of £5 a month thats another £60 a year. So instead of £180 every 9 months, it would be £225. So £1800 divided by £225 is 8 lots of 9 months which is 6 years but interest free if you can juggle 0% deals. It would take an extra 18 months at £20 a month. So every little spare £5 would see it reduce quicker. As you have had this for 15 years paying overdraft fees I would rather see the next six interest free! Hope that helps.